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French PM says most tax cut measures will take effect in 2019

Tue, Jul 04, 2017 - 10:16 PM

French Prime Minister Edouard Philippe said on Tuesday that the government's plan to convert the previous administration's flagship "CICE" tax credit for companies into a permanent reduction in payroll charges, will only take effect in 2019.

PHOTO: REUTERS

[PARIS] French Prime Minister Edouard Philippe said on Tuesday that the government's plan to convert the previous administration's flagship "CICE" tax credit for companies into a permanent reduction in payroll charges, will only take effect in 2019.

President Emmanuel Macron initially planned to do the switch - which would cost public finances about 20 billion euros (S$31.439 billion) in 2018, but a public audit ordered by the government revealed France risked overshooting its budget deficit target this year and next year as well.

Mr Philippe confirmed in an address to lawmakers that the government would exempt any non-property related wealth from the country's wealth tax, a measure which will take effect in 2019. It will gradually cut the corporate tax level to 25 per cent by 2022 from 33.33 per cent today.

France will also introduce a flat tax of about 30 per cent on income drawn from savings, from the current level of up to 50 per cent, Mr Philippe said.